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Sustaining Transformative Growth in Sri Lanka (2025, 2030) A Policy Blueprint for Inclusive and Durable Recovery

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From left: Dr. Dirk Willem T. Velde, Dr. Ganeshan Wignaraja, and Yvette Fernando presenting the edited version of Sustaining Transformative Growth in Sri Lanka (2025–2030).

From left: Dr. Dirk Willem T. Velde, Dr. Ganeshan Wignaraja, and Yvette Fernando presenting the edited version of Sustaining Transformative Growth in Sri Lanka (2025–2030).The book titled “Sustaining Transformative Growth in Sri Lanka (2025–2030)”, jointly produced by ODI Global and the Centre for Poverty Analysis (CEPA), was officially launched on 8 January 2026 at the Sri Lanka Foundation in Colombo, under the patronage and participation of the book’s eight authors.

Sri Lanka stands at a critical crossroads. Having emerged from its worst economic crisis since independence, the country now faces the dual challenge of sustaining hard-won macroeconomic stability while igniting transformative growth. This report provides a timely and evidence-based roadmap for navigating this complex transition. While recent stabilisation efforts have delivered encouraging outcomes—including renewed economic growth and a sharp reduction in inflation, poverty levels remain alarmingly high, underscoring the limits of stabilisation without deeper reform.

The study argues that continued structural reforms are essential to prevent future crises and unlock Sri Lanka’s long-term development potential. It identifies six interlinked policy priorities: maintaining macroeconomic stability; integrating more effectively into global supply chains; improving factor markets such as labour, land and capital; implementing targeted sectoral policies; accelerating poverty reduction; and building political and social consensus for reform. Through coordinated action across these areas, Sri Lanka can capitalise on opportunities in tourism, the digital economy, niche manufacturing, and agriculture to achieve sustainable and inclusive growth between 2025 and 2030.

The book is authored by a group of leading economists and policy practitioners: Dr. Sirimal Abeyratne, Dr. Chandranath Amarasekara , Raveen Basnayake , Dr. Indrajit Coomaraswamy, Yvette Fernando , Dr. Dirk Willem T. Velde, Asela Wijesinghe, and Shiya Wickramasinghe and Dr. Ganeshan Wignaraja.

Commenting at the launch, Dr. Sirimal Abeyratne, Executive Director of CEPA, stated “Sri Lanka’s challenge is not simply to return to growth, but to secure growth that is transformative in nature—one that reshapes the structure of the economy, creates productive employment, and delivers tangible improvements in living standards. This book outlines a realistic and coherent policy direction for the critical 2025–2030 period.”

The report emphasises that the coming years represent a narrow but decisive window of opportunity for Sri Lanka. Locking in reforms, strengthening institutions, and fostering collaboration between the state, private sector, and civil society will be crucial to placing the economy on a more resilient, equitable, and future-ready growth path.



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Courtesy call by the Heads of Mission- Designate on Prime Minister

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The heads of mission designate to Sri Lanka paid a courtesy call on Prime Minister Dr. Harini Amarasuriya on 26th of March at the Prime Minister’s office.

The delegation comprised Dharshana M. Perera, High Commissioner – designate of Sri Lanka to Malaysia, Ms. Dayani Mendis, Ambassador and PRUN – designate of Sri Lanka to Austria, Ms. N.I.D. Paranavitana, Ambassador – designate of Sri Lanka to Ethiopia & African Union, Prof. (Ms.) M.I. Fazeeha Azmi,Ambassador – designate of Sri Lanka to Iran,  Saman Kumara Chandrasiri, Ambassador – designate of Sri Lanka to Israel, and  M. Farook M. Fawzer, Representative – designate of Sri Lanka to Palestine.

The Prime Minister, Dr. Harini Amarasuriya, extended her best wishes to the Heads of Mission–designate and underscored the importance of their forthcoming assignments in advancing Sri Lanka’s national interests emphasizing their collective role in contributing towards the socio-economic upliftment of Sri Lanka.

The Prime Minister further highlighted the importance of projecting a positive and credible image of Sri Lanka internationally, through consistent, professional, and strategic engagement in their respective host countries and multilateral platforms.

She encouraged the Heads of Mission to actively identify and facilitate high-quality investment opportunities, particularly in sectors aligned with Sri Lanka’s development priorities, with a focus on sustainability, innovation, and long-term value addition.

Particular emphasis was placed on the promotion and diversification of Sri Lanka’s exports, including the exploration of new markets and strengthening trade linkages.

The meeting was attended by the Secretary to the Prime Minister, Additional Secretary to the Prime Minister Ms. Sagarika Bogahawatta and heads of mission-designate.

[Prime Minister’s Media Division]

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SC finds Keheliya, others, guilty of violating FRs of public through corrupt drug procurement deal

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The Supreme Court yesterday held former Health Minister Keheliya Rambukwella and several senior health officials liable for violating the fundamental rights of the public over a controversial drug procurement carried out under the 2022 Indian Credit Line.

Delivering the judgment, a three-judge bench, headed by Chief Justice Preethi Padman Surasena, and comprising Justice Kumudini Wickremasinghe and Justice Janak de Silva, found that the procurement of medical supplies from an unregistered company, in breach of established procedures, had resulted in a serious infringement of public rights.

The Court ruled that the granting of a Waiver of Registration by the authorities was “wrongful, arbitrary and capricious,” and held that the direct procurement carried out on an unsolicited basis was unlawful. The transaction was accordingly declared null and void.

In a significant order, the Court directed Rambukwella to pay Rs. 75 million in compensation to the State from his personal funds.

The then Health Ministry Secretary Janaka Chandragupta and former Chairman of the National Medicines Regulatory Authority (NMRA), Prof. S. D. Jayaratne, were each ordered to pay Rs. 50 million.

The Court further directed NMRA Chief Executive Officer Dr. Wijith Gunasekara and former Director of the Medical Supplies Division Dr. Thusitha Sudarshana to pay Rs. 50 million each as compensation.

The ruling followed the hearing of a fundamental rights petition filed by Transparency International Sri Lanka and two other parties.

The Court also instructed the Commission to Investigate Allegations of Bribery or Corruption to initiate appropriate action under the Anti-Corruption Act against those found responsible.

Senior Counsel Senany Dayaratne, with Nishadi Wickramasinghe, Lasanthika Hettiarachchi, Janani Abeywickrema and Maheshika Bandara, appeared for the petitioners.

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Sajith nudges govt. to follow India’s example in giving relief to consumers by slashing taxes on fuel

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Opposition and SJB Leader Sajith Premadasa yesterday urged President Anura Kumara Dissanayake to reduce taxes on fuel, just as the Indian government has done.

He said in a post on X that “Modi government has decided to reduce the Special Additional Excise Duty on petrol and completely remove it for diesel in order to cushion the hardship on the Indian consumer. High time for Anura Kumara Dissanayake to keep up to his election promise and follow suit.”

Meanwhile foreign media reported that India has slashed excise duties on petrol and diesel to protect consumers and rein in a potential spike in inflation, while imposing windfall taxes on aviation fuel and diesel exports, amid volatile global oil markets, as a result of the Iran war.

Global oil prices have surged past $100 per barrel after the near closure of the Strait of Hormuz, which serves as a conduit for 40% of India’s crude oil imports, since the US and Israel first struck Iran on February 28.

In a government order, released late on Thursday, India’s Finance Ministry reduced the special excise duty on petrol to three Indian rupees ($0.0318) per litre from 13 Indian rupees earlier. It also cut the duty on diesel to zero from INR 10 rupees per litre.

The government did not say how much the duty cuts would cost. The move comes ahead of elections next month in four Indian states and one federal territory, with Indian voters known to be extremely sensitive to higher prices.

“Government has taken a huge hit on its taxation revenues to ensure very high losses of oil companies, approximately 24 rupees a litre for petrol and 30 rupees a litre for diesel, at this time of sky high international prices, are reduced,” Indian Oil Minister Hardeep Singh Puri said in a post on X.

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